The new methodology for calculating the Adverse Effect Wage Rate, which takes effect today, will take a toll on farms that rely on H-2A workers, particularly small farms. American Farm Bureau Federation economists analyzed the new AEWR in their latest Market Intel report.
Among concerns with the new methodology is how worker responsibilities are determined. For example, a worker who spends most of the day in the field, but also drives fellow workers to the farm will be required to be paid as a chauffeur. In the state of New York, that represents a 30% increased wage rate. According to the Market Intel, “applying the above changes to the sample farms would have a significant impact on the wage outlays of each farm, but particularly the small farm. Across a national average, on the small farm the new methodology would have increased wage outlays by 15.1%, 13.6%, 12.8%, 12.7% and 12% in 2018, 2019, 2020 and 2021, respectively, and an estimated 12.6% in 2023.”
The new rule will also make the H-2A program even more difficult to administer by introducing two dates for wage increases throughout the year instead of the current single date.
Source: fb.org
Categories: New York, Business, Government & Policy